WHICH CHART TO USE?

Which chart is the best, or which one gives the best signals? Bar charts or candlesticks are best used when time is the most important consideration in the trading method. Japanese candlestick charts are similar to bar charts and the choice of which one to use is simply a question of preference. Different types of patterns evident in candlesticks can also be discerned in bar charts, and vice versa.

Other traders rely on point and figure and swing charts, because they provide a good indication of the action and reaction of market movements. Point and figure charts display excellent interaction of supply and demand by showing how the market moves through different price levels. The charts give good indications of support and resistance, but, unfortunately, do not represent time well.

The question of which chart to use is more a question of which method of charting the trader feels more comfortable with. Different charts do not necessarily provide better or truer signals but instead should be used depending on the time frame and needs of the trader.